Government Cost Allocation & Rate-Setting SME

The Government Cost Allocation & Rate-Setting Subject Matter Expert serves as the senior public-sector advisor for our public sector client’s Cost of Service Study. This role provides specialized expertise in government financial management, cost recovery methodologies, indirect cost allocation, activity-based costing, rate development, and public-sector budgeting practices. The SME works closely with the Principal Consultant, Cost of Service & Financial Analysis to validate methodologies, review assumptions, assess funding implications, and ensure recommendations align with established government accounting and rate-setting practices. The SME provides independent quality assurance and strategic guidance while helping ensure outputs are defensible, auditable, and suitable for executive, legislative, and oversight review.

PRIMARY RESPONSIBILITIES

Government Financial Advisory

• Provide subject matter expertise related to state government budgeting, cost recovery, and financial management practices.
• Advise on public-sector funding models, shared-service organizations, enterprise service providers, and fee-for-service environments.
• Support application of government financial management best practices throughout the engagement.
• Assist in interpreting financial, operational, and policy considerations that may impact agency rate decisions.

Cost Allocation Methodology Review

• Review and validate proposed cost allocation methodologies and assumptions.
• Advise on allocation approaches for direct, indirect, shared-service, and overhead costs.
• Evaluate cost pool structures, allocation drivers, and attribution methodologies.
• Ensure allocation methodologies are transparent, supportable, and aligned with accepted government accounting practices.

Rate Setting & Cost Recovery Expertise

• Review current rate structures and rate-setting methodologies.
• Assess cost recovery models and funding adequacy.
• Advise on the relationship between service costs, revenues, and rate sustainability.
• Validate recommendations related to rate adjustments, cost recovery improvements, and financial sustainability.

Forecasting & Financial Sustainability Review

• Review forecasting assumptions related to labor costs, inflation, technology expenditures, contract costs, and budget adjustments.
• Advise on public-sector financial risks and cost volatility considerations.
• Validate sensitivity analyses and long-term financial forecasting approaches.
• Support development of risk ratings and sustainability assessments for agency programs and services.

Quality Assurance & Executive Review

• Perform independent review of key analyses, findings, and recommendations.
• Participate in executive review sessions and stakeholder workshops as required.
• Review draft reports, executive briefings, and presentation materials.
• Ensure conclusions are defensible and supported by documented assumptions and data sources.
• Provide expert briefing support or executive-level guidance if requested by the agency.

REQUIRED QUALIFICATIONS

• Bachelor's degree in Accounting, Finance, Public Administration, Economics, Business Administration, or a related discipline.
• Fifteen or more years of experience in government finance, rate setting, cost allocation, cost recovery, or public-sector financial management.
• Demonstrated experience leading or advising on cost-of-service studies, indirect cost allocation models, or government rate studies.
• Deep understanding of state government budgeting and financial governance practices.
• Experience developing and evaluating cost allocation methodologies and cost recovery frameworks.
• Experience supporting executive leadership, oversight bodies, or legislative stakeholders.
• Exceptional communication, facilitation, and executive presentation skills.

PREFERRED QUALIFICATIONS

• CPA, CGFM, MBA, MPA, or equivalent professional credential.
• Experience supporting statewide shared-service organizations, enterprise service providers, utilities, transportation agencies, or large government agencies.
• Experience with activity-based costing, indirect cost rate development, and governmental chargeback models.
• Experience supporting legislative, audit, inspector general, or oversight reviews.
• Familiarity with technology service organizations and internal service fund environments.